Question

A building costing rs. 350000/- has been constructed on a free hold land measuring 1000 sq.M recently in a big city. The prevailing rate of land in the neighborhood is rs. 150 per sq.M. Calculate the net rent of the property, if the expenditure on all outgoing, including sinking fund is rs 12000 per annum. Work out also the gross rent of the property per month.

Answer 1

Answer:

Example: a) the Present estimate of a building is Rs 200000. it is 20 yrs old and maintained in a good condition. The life of the structure is assumed to be 80 yrs. Work out the present value of the building for acquisition. b) With the present value of the building calculate the standard rent, the rate of interest may be assumed 6%. Solution: a) The depreciated value of the building is: D= P*((100- rd)/100)n Where, D= Depreciate value P = Rs 200000 (i.e Cost of a present Market Rate) rd= 1 (assumed) – fixed percentage of depreciation (r stand for rate and d for depreciation) n=20 Therefore, D=163581.0

Answer 2

Answer:

Step-by-step explanation: